AUD/USD holds out hope for a technical break greater this week

Within the second half of February buying and selling, AUD/USD noticed a modest rebound from its lowest ranges since November final yr to round 0.6580-95. The rebound stalled amid a take a look at of the 200-day transferring common (blue line) on the time as properly. That contemplating the each day closes did not breach the important thing technical stage. However this week, consumers want to make a play as seen above.

The confluence of the 100 (crimson line) and 200-day transferring averages is seen at 0.6560-63 at the moment. And value has damaged previous that time as consumers bid the pair to 0.6590 now. That shifts the bias to being extra bullish however there’s nonetheless that key resistance area of 0.6580-95 to shake off.

And basically, that’s the place we’re at now for AUD/USD. Consumers are holding out hope in making an attempt for an upside break whereas sellers want to defend towards that.

A push above the important thing resistance area highlighted will convey into focus the 61.8 Fib retracement stage at 0.6606 subsequent. That may come alongside some swing highs in January round 0.6614-24 in limiting additional upside potential.

As for any draw back return, sellers must push value again beneath the confluence of the each day transferring averages famous above.

Seeking to in the present day, total greenback sentiment is pretty combined to this point on the day. European currencies don’t make a lot headway towards the greenback whereas the Japanese yen is doing its personal factor. The aussie and kiwi are kind of outliers as they’re conserving stronger regardless of softer danger sentiment, so there’s that to weigh up.

All else being equal, I reckon we’d have to attend till the US non-farm payrolls tomorrow to settle the rating in AUD/USD.